‘Vital plank’: Albo’s big move with Indonesia

Australia and Indonesia have agreed to a major defence pact that will boost co-operation between the two countries, Prime Minister Anthony Albanese has announced.

Mr Albanese told reporters on Tuesday that Australia’s relationship with its northern neighbour was “underpinned by mutual respect for sovereignty and territorial integrity”.

“I’m pleased to announce that we have today concluded our bilateral treaty-level defence co-operation agreement,” he said, standing alongside Indonesian Defence Minister Prabowo Subianto.

“This historic treaty will bolster our strong defence co-operation by deepening dialogue, strengthening interoperability and enhancing practical arrangements.

“It will be a vital plank for our two countries to support each other’s security, which is vital to both countries but also to the stability of the region that we share.”

A strongman figure with a populist flair, Mr Prabowo is also Indonesia’s president-elect, having won 58.6 percent of ballots cast in his country’s general election in February.

His victory came despite dark allegations he was involved in disappearing student activists nearly two decades ago when he headed an elite military force used to stamp out domestic unrest under former dictator Suharto.

He was discharged from the military over the kidnappings but maintains he did not play a direct role.

“You are such a welcome visitor to our country,” Mr Albanese said to Mr Prabowo, praising the future Indonesian president’s landslide election victory.

Mr Prabowo said the defence pact, which will be signed in Indonesia later this week, was “a mark of the friendship, the good relationship between us”.

“We have had our ups and downs as the political situation and the geopolitical situation of course evolved, but I think we are very happy today to have several decades of very close co-operation and I am determined to continue this good neighbour relationship,” he said, pledging to “continue the general policies” of incumbent president Joko Widodo.

The treaty builds on the Australia-Indonesia Defence Co-operation Arrangement, the framework from which Canberra and Jakarta co-ordinate security exercises.

Defence Minister Richard Marles said the upgraded agreement was “a profoundly significant moment for the national security of both of our countries” and it would boost “interoperability between our defence forces”.

Mr Prabowo stands to inherit the largest economy in Southeast Asia – a key destination for Australian exports.

The country is also crucial in Australia’s efforts to counter people smuggling and human-trafficking.